Baylor Scott & White Health, the state’s largest non-profit hospital system, eliminates 145 jobs in Central Texas as part of its plan to outsource and retrain 1,700 employees.
According to state documents, the company will hold 83 jobs at 3161 Eagles Nest St. in Round Rock and reduced 62 jobs at SHA LLC at 12940 NUS 183 in Austin.
“To make a bigger investment in frontline care, Baylor Scott & White announces a change in the operation of certain impatient corporate services,” the company said in WARN letters sent by Craig Morgan, mayor of Round Rock, and Steve Adler, mayor of Austin, was sent. “Our goal is for every employee involved to offer a similar service option, inside or outside BSWH, and no one will miss a salary because of this transition.”
A WARN letter, which stands for notification of employee adjustment and retraining legislation, is a federal mandate that employers must give to state governments in the event of major layoffs.
The letters will start no later than May 3 and are expected to be permanent.
Baylor Scott & White said they have made arrangements for all eligible employees to receive offers of similar service from a company entrepreneur.
“Nearly two-thirds of the employees involved will have the opportunity to work for the new service providers and do a job similar to what they do today, but for a new company,” Christy Millweard, Baylor Scott & White told the statesman said. “For the other one-third, our team of recruiters and HR staff will work one-on-one with each individual to provide different opportunities.”
According to the Baylor Scott & White system, there will be at least 2,000 people employed in the Austin area by 2020, according to the Greater Austin Chamber of Commerce website.
The company announced a restructuring plan in January, saying it was part of a broader effort to focus on its core business and related opportunities.
The dismissal comes because the healthcare industry has been suffering from the COVID pandemic for more than a year. The health workers in the front line will not be affected by the cuts, the company said.
About two-thirds of Baylor Scott & White’s employees affected will be transferred to partner companies specializing in information technology, billing and revenue management, and other support services, the company said in January.
About 600 to 650 positions throughout the company will be eliminated, and employees will be invited to participate in retraining programs, Baylor Scott & White said.
The company said it would save $ 600 million over five years and invest the savings in front-line health initiatives.
Last spring, Baylor Scott & White said they would eliminate about 3% of the workforce, or about 1,200 employees. Senior executives at the company, about 260 in total, have also taken temporary salary cuts, the company said.
This report contains material from the Dallas Morning News.